El Salvador Launches Historic Tokenized Asset Drive for New Hotel Development

Investors can now purchase tokenized shares of the 4,500 square-foot Hampton by Hilton hotel in El Salvador through the Bitcoin layer 2 Liquid Network via Bitfinex Securities. This first-of-its-kind tokenized asset raise aims to raise $6.25 million, offering a 10% coupon over five years. Minimum investment is $1,000, with incentives such as free hotel nights for HILSV token holders. This venture signals El Salvador's expansion into real-world asset tokenization and marks a new era of capital markets for the country.

El Salvador Embarks on Historic Tokenized Asset Drive for New Hotel Development

El Salvador is poised to make history as it launches its first-ever tokenized asset raise for a new Hampton by Hilton hotel, marking a significant milestone in the country's digital asset adoption and capital market development.

Through Bitfinex Securities, El Salvador's first licensed and registered digital asset provider, investors will have the opportunity to own a share of the 4,500-square-foot hotel located at El Salvador's international airport. Inversiones Laguardia S.A. de C.V., the issuer behind the debt offering, aims to raise $6.25 million from the crowdfunding initiative, offering a 10% coupon over a five-year term.

"This tokenized asset raise represents a pivotal step in fostering El Salvador's budding capital market and introducing a novel asset class," stated Paolo Ardoino, Chief Technology Officer of Bitfinex Securities. "It democratizes access to investments for individuals who may not typically have such opportunities, while expanding financing options for issuers in capital-constrained markets."

Investors seeking to participate in this groundbreaking initiative can purchase the tokenized shares, designated by the ticker HILSV, on the Liquid Network. Established by Blockstream in 2018, Liquid is a Bitcoin-centric infrastructure platform founded by renowned cypherpunk Adam Back.

The hotel project, encompassing five levels, will feature 80 rooms, five commercial spaces, and a range of hotel amenities, including a swimming pool, restaurants, a gym, gardens, and multipurpose rooms. Notably, HILSV token holders will also be eligible for complimentary nights at the hotel based on their investment size.

El Salvador's embrace of Bitcoin and its transformative potential has extended to the realm of real-world asset tokenization. In April 2023, the country granted Bitfinex a digital asset service provider license, paving the way for this innovative financing model.

Prior to Bitcoin's adoption, Salvadorans faced limited investment options, often restricted to residential property purchases, as explained by Jamie Robinson, Chief Strategy Officer of The Bitcoin Hardware Store. However, Bitfinex's expansion marks a turning point in El Salvador's financial landscape, ushering in a "new era of capital markets" built on Bitcoin.

"This capital raise marks not only our inaugural venture in El Salvador but also serves as a testament to the transformative power of Bitcoin-based capital markets," said Jesse Knutson, Head of Operations at Bitfinex Securities. "It empowers the local population with new pathways to participate in financial markets."

El Salvador's tokenized asset raise for the Hampton by Hilton hotel stands as a testament to the country's unwavering commitment to innovation and financial inclusion. By leveraging the transformative power of Bitcoin, El Salvador is charting a path toward economic growth and broader financial participation for its citizens.